Insights
MVRV (Market Value to Realized Value)
Shows whether today's price is above or below the average price that holders paid for their coins.
Here's the trend so far. The yellow dashed line is the Bitcoin price.
How to read this chart
The ratio of today's price to all holders' average cost basis. Below 1.0 has been historically undervalued; above 3.7 was the cycle-top zone seen only three times (2013, 2017, 2021).
New to this metric?
What is MVRV? A metric that compares the market's average break-even with today's price. Below 1 means the price is cheaper than the average purchase price, a historically undervalued zone, while above 3.7 is the top zone reached only three times before.
How is MVRV calculated?
Today's market cap divided by the 'realized cap', the sum of each coin's price when it last moved. That realized cap acts as the average cost basis of all holders, so a reading of 1 means the whole market is exactly at break-even.
Why does it matter?
Selling pressure changes with how much profit holders are sitting on. Large unrealized gains tend to bring out profit-taking, while fewer people sell at a loss. That is why it is often used as a thermometer for cycle tops and bottoms.
How do I use it?
Use it for the big picture of where we are in the cycle rather than timing trades off a single number. Historically, below 1 often overlapped with long-term bottoms and above 3.7 with tops. Peak readings have edged lower each cycle, though, so pair it with other indicators.